Fill and Sign the Security Agreement Regarding Aircraft and Equipment Form

Security Agreement Regarding Aircraft and Equipment Security Agreement made the ________________ (date) , between ______________________ (Name of Debtor) , of ______________________________ __________________________________________ (street address, city, county, state, zip code) , hereinafter called Debtor , and _______________________ (Name of Secured Party) , a corporation organized and existing under the laws of the state of _______________________ (name of state) , with its principal office located at ______________________________________________________________________ (street address, city, state, zip code) , referred to herein Secured Party . 1. Creation of Security Interest Debtor grants to Secured Party a security interest pursuant to Article 9 of the Uniform Code of the State of __________________ (Name of State) in the Aircraft, engines, equipment and other property described as follows: FAA Registration Manufacturer's Year Model Serial No. Number Name ________________ ___________________ ______ _________ __________ ________________ ___________________ ______ _________ __________ ________________ ___________________ ______ _________ __________ Registration Certificate No. Engine Name and Model Engine Number _______________________ _____________________ ________________ _______________________ _____________________ ________________ _______________________ _____________________ ________________ Said Aircraft, engines, equipment and other property are now, and are to be permanently, hangared or located at ________________________________________ _______________________________ (street address, city, state, zip code) , together with all replacements for such Aircraft, accessories, equipment, parts, appliances and appurtenances now or in the future a part of the same, and substitutions for and repairs to the same, all of which are in this Agreement referred to as Aircraft . NOTICE: Engines less than 550 horsepower and propellers not capable of Absorbing 750 or more shaft horsepower are not eligible for recording with the Federal Aviation Administration. 2. This security interest in Aircraft is granted as security for: A. The payment to Secured Party of: 1. The Promissory Note executed by Debtor in favor of Secured Party, in the principal sum of $____________, together with interest thereon from date at the rate of ______% per annum on the unpaid balance until paid, payable at ______________________________________________ ________________ (street address, city, state, zip code) , or at such other place as the holder hereof may designate in writing, in _______ (number) consecutive monthly installments of $____________, with the first of said installments being due and payable on the _______________ (date) , and each subsequent monthly installment shall be due and payable on the first day of each succeeding month thereafter until the entire indebtedness evidenced by this Note is fully paid, except any remaining indebtedness, if not sooner paid, shall be due and payable on ________________ (date) ; and/or 2. All sums subsequently advanced and all expenditures subsequently made, in addition to any advancements or expenditures necessarily made pursuant to the next paragraph, by Secured Party to or for Debtor, and any and all indebtedness and obligations now or later owing or due or becoming owing or due from Debtor to Secured Party. B. The repayment of any and all sums and amounts that are necessarily advanced or expended by Secured Party, or Secured Party's assigns for the maintenance or preservation of Aircraft or any part of the Aircraft. C. The payment and performance of all obligations and promises of Debtor contained in this Agreement. 3. Decrease in Value of Aircraft If Aircraft decreases in value, Debtor shall give to Secured Party further security or make payments on account to Secured Party in amounts and to the extent sufficient to offset the decrease. 4. Assignment of Income Debtor assigns to Secured Party all rents, issues, income and profits of or from Aircraft. Any money received by Secured Party under the provisions of this Agreement may, at Secured Party's option, be applied on any indebtedness secured by this Agreement. 5. Debtor’s Rights in Aircraft Debtor declares and warrants to Secured Party that Debtor is the absolute owner and in possession of Aircraft; that Aircraft is now in Debtor's possession at the above- described location; and that Aircraft is free and clear of liens, secured interests, encumbrances and adverse claims, with the exception of the security interest created by this Agreement. 6. Perfection of Security Interest Debtor shall keep this a first-lien security interest in Aircraft and, at Debtor's own expense, shall defend any and all actions and proceedings affecting title to Aircraft, or any part of the same, or affecting Secured Party's security interest in Aircraft. Debtor shall, on demand at any time, make due, execute and deliver all such further acts and documents as shall be required to render all of Aircraft available for the security and satisfaction of Debtor's indebtedness under this Agreement. 7. Power of Attorney Any officer of Secured Party is irrevocably appointed the attorney-in-fact of Debtor, with full power of substitution, to sign any certificate of ownership, registration card, applications, affidavits or documents necessary to transfer title to any of Aircraft, to receive and receipt for all licenses, registration cards and certificates of ownership, and to do all acts necessary or incident to the powers granted to Secured Party in this Agreement as fully as Debtor might. 8. Protection of Aircraft Debtor shall do all acts that may be necessary to maintain, preserve and protect Aircraft and to keep Aircraft in airworthy condition and repair. If all or any part of Aircraft becomes worn, damaged or destroyed, Debtor shall replace it by other property of equal value. Debtor shall not cause or permit any waste or unusual or unreasonable depreciation of Aircraft or any act for which Aircraft might be confiscated. Debtor shall pay, at least ______ (number) days before delinquency, all taxes, charges, assessments and liens now or later levied or imposed on Aircraft and shall not sell, lease, create a security interest in, encumber or dispose of all or any part of Aircraft without Secured Party's written consent. At any time on Secured Party's demand, Debtor shall furnish Secured Party with a report showing the location, condition and use of Aircraft and shall exhibit to and allow inspection by Secured Party of Aircraft. Debtor shall provide, maintain and deliver to Secured Party policies insuring Aircraft against loss or damage by such risks and in such amounts, forms, and insurers as Secured Party requires and with loss payable solely to Secured Party. If Secured Party takes possession of Aircraft, the insurance policy or policies and unearned or returned premiums of the same shall, at Secured Party's option, become the sole property of Secured Party, and Debtor assigns such policies to Secured Party. 9. Use of Aircraft Debtor shall register, use, operate and control Aircraft in accordance with all statutes, laws, ordinances and regulations relating to the registration, use and control of such Aircraft and accessories. In particular, Debtor shall comply with all applicable rules and regulations of the Federal Aviation Administration and the Department of Transportation. Debtor shall neither use Aircraft, nor permit Aircraft to be used, for any unlawful purpose. Debtor shall not remove Aircraft, nor permit Aircraft to be removed, from the state where Aircraft is permanently located, as set forth in this Agreement, for any period in excess of ______ (number) days, without Secured Party's prior written consent, nor remove or permit removal of Aircraft outside the continental limits of the United States. 10. Protection of Security Interest If Debtor fails to make any payment or to do any act in this Agreement required, Secured Party may, without obligation to do so and without notice to or demand on Debtor, make such advancements or expenditures and do such acts as Secured Party may deem necessary to protect Secured Party's security. Secured Party is authorized, without limiting the general nature of the general authority conferred in this Agreement, to take possession of Aircraft; to pay, purchase, contest and compromise any security interest, encumbrance, charge or lien that in Secured Party's judgment appears to be prior or superior to the security interest created by this Agreement; and, in exercising any such powers and authority, to pay any and all necessary expenses, employ counsel and pay counsel reasonable fees. Secured Party's determination as to whether or not Debtor has failed to make any payment or do any act as required by this Agreement required shall be final and conclusive. Debtor shall pay immediately and without demand all sums expended by Secured Party pursuant to the provisions of this Agreement, with interest from date of expenditure at the rate of _____% per annum. 11. Default and Remedies If Debtor defaults in the payment of any of the indebtedness, obligations or liabilities secured by this Agreement or in the performance of any of Debtor's other obligations, promises, warranties or declarations contained in or secured by this Agreement, Secured Party, at its option and without demand on or notice to Debtor, may declare all indebtedness, obligations and liabilities secured by this Agreement, and all other sums owing by Debtor to Secured Party, to be immediately due and payable. Secured Party then shall have the remedies of a Secured Party under to Article 9 of the Uniform Code of the State of ________________ (Name of State) , including, but not limited to, the rights to require Debtor to assemble Aircraft and make it available to Secured Party at a place designated by Secured Party; to enter on the premises where Aircraft may be and take possession of the Aircraft; and to remove and/or sell and/or dispose of Aircraft, or any part of the same, at public or private sale on legal notice to Debtor. Aircraft, or any part of the Aircraft, may be sold in one or more lots at one or more sales that may be held on different days and that need not be within view of the property being sold. Secured Party shall deduct and retain from the proceeds of such sale or sales all costs, expenses and charges paid or incurred in the taking, removal, handling and sale of Aircraft, or otherwise incurred in connection with the same, including any reasonable attorney's fees incurred or paid by Secured Party. The balance of the proceeds shall be applied by Secured Party on the indebtedness, obligations and liabilities secured by this Agreement, in such order and manner as Secured Party may determine, and the surplus, if any, shall be paid to Debtor or to the person or persons lawfully entitled to receive it. If suit is brought or any proceedings are instituted by Secured Party in connection with this Agreement, there shall be due from Debtor to Secured Party, immediately on the commencement of the suit or proceedings, reasonable attorney's fees in such action or proceeding, which sum shall also be secured by this Agreement. In any such action or proceeding, Secured Party shall be entitled to the employment of a receiver, without notice, to take possession of all or any part of Aircraft and to exercise such powers as the court shall confer on such receiver. At any sale or sales, made under this Agreement or authorized in this Agreement, Secured Party, any person on behalf of Secured Party, or any other person may bid for and purchase Aircraft, and, in the event of such purchase, the purchaser subsequently shall hold Aircraft discharged of all right of redemption. 12. Waiver Without in any way affecting Debtor's obligation under this Agreement, Secured Party may, from time to time and without notice, release or otherwise deal with any person now or later liable for the payment or performance of any obligation under this Agreement or secured by this Agreement; renew, extend or alter the time or terms of payment of any such obligation; and release, surrender or substitute any property or other security for any such obligation, or accept any type of further security for the same. Consent is given to delay or indulge in enforcing payment or performance of any such obligation, and Debtor waives diligence, presentment, protest, demand and notice of every kind, as well as the right to require Secured Party to proceed against any person liable for the payment of any such obligation or to foreclose on, sell or otherwise realize on or collect or apply any other property, real or personal, securing such obligation, as a condition or prior to proceeding under this Agreement. 13. Construction and Effect of Agreement This Agreement shall be construed according to the terms of Article 9 of the Uniform Code of the State of _________________ (Name of State) , and other applicable laws of _________________ (Name of State) . 14. Severability The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision. 15. Notices Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement. 16. Entire Agreement This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement. 17. Modification of Agreement Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party. 18. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine. WITNESS our signatures as of the day and date first above stated. _________________________ (Name of Secured Party) ________________________ By: ________________________________ (P rinted Name of Debtor) ________________________ ________________________ (P rinted Name & Office in Corporation) (Signature of Debtor) ________________________ (Signature of Officer) (Acknowledgment form may vary by state) STATE OF _____________ COUNTY OF ____________ Personally appeared before me, the undersigned authority in and for the said county and state, on this _____ day of ____________, 20_____, within my jurisdiction, the within named _________________ (Name of Officer) , who acknowledged that he is __________________ (Name of Office) of ___________________ (Name of Secured Party) , a ________________ (name of state) corporation, and that for and on behalf of the said corporation, and as its act and deed he executed the above and foregoing instrument, after first having been duly authorized by said corporation so to do. ________________________________ NOTARY PUBLIC My Commission Expires: ____________________ State of _____________________ County of ___________________ Personally appeared before me, the undersigned authority in and for the said County and State, on this ________________ (date) , within my jurisdic tion, the within- named ____________________ (Name of Debtor) , who acknowledged that he executed the above and foregoing instrument. ________________________________ NOTARY PUBLIC My Commission Expires: ____________________